The recent financial crisis has focused the attention of scholars and policymakers on how to
improve financial stability through better macro‐prudential regulation and supervision. In this …

This paper aims at improving our understanding of internal risk rating systems (IRS) at large
banks, of the way in which they are implemented, and at verifying if IRS produce consistent …

Banks' limited knowledge about borrowers' creditworthiness constitutes an important friction
in credit markets. Is this friction deeper in recessions, thereby contributing to cyclical swings …

In this paper, we use credit rating data from two large Swedish banks to elicit evidence on
banks' loan monitoring ability. For these banks, our tests reveal that banks' internal credit …

The lending banks' function of loan monitoring plays an important role in sustaining quality
loan portfolios and protects risk assets against deterioration thereby keeping Non …

Credit rating agencies play an essential role in the modern financial system and are relied
on by creditors and investors on the market. In the recent financial crisis, their power and …

The failure of credit rating agencies to properly assess risks of complex financial securities
was instrumental in setting off the global financial crisis. This paper studies the incentives of …

The objectives of the study are: 1) to analyze the effects of Capital Adequacy Ratio (CAR),
Credit Risk, Loan to Deposit Ratio (LDR), and Net Interest Margin (NIM) to Non-Performing …

This research was conducted to investigate the quality of internal credit risk rating systems
maintained by the commercial banking industry of Pakistan with reference to multiple areas …

We exploit the quasi-random assignment of federal bank examiners to syndicated loans to
study the effect of supervision on corporate lending. Following supervisory rating …